April 15, 2016
Allegations have emerged that AIB may have misled the Central Bank in reporting the bad debts on its books. These need to be investigated immediately.
On Wednesday a protected disclosure to both the Central Bank of Ireland and the ECB was made. The whistleblower reported that they had a reasonable belief that there was wrongdoing on the part of AIB’s Financial Solutions Group in their handling of the reporting of bad debts.
Stephen Donnelly has called on the Central Bank to launch an investigation into the claims:
“The allegations made earlier this week mean that uncertainty now hangs over the reporting of bad debts and as a result, AIB’s reported profits. It’s important for the public to be assured that distressed debts are being dealt with properly by financial institutions.
“If these reports prove to be correct, it would mean that bad debt levels in AIB are higher than reported, and the regulator may have been misled. It is important that an investigation is carried out to establish the validity of the claims. This investigation would either reassure the public as to the progress of AIB in addressing bad debt, or identify the issues within the regulation which led to errors in reporting.
“I would like to commend the brave individual who came forward to report their concerns. This disclosure could ensure that previous failures in regulation can be avoided.”